For decades, Germany's industry thrived alongside China's economic growth. However, recent trends indicate a shift in competitive dynamics. German exports have dipped by 1.7% to 1.65 trillion euros, in contrast to China's export growth of 7.1%. Experts like Philipp Böing and Jens Burchardt caution against China's industrial policy aimed at self-strengthening, or 'ziqiang'. Despite China's ambitions, its mounting debt presents a looming financial risk.
The race to become a global technology leader is crucial for China's future, impacting industries worldwide. German firms face increased pressure from China's competitive pricing and expanding production capabilities. High energy costs in Germany further exacerbate these challenges.
The broader geopolitical landscape, including trade tensions like those under former US President Donald Trump, also plays a significant role in shaping these economic shifts. As China continues to expand its global export reach, the German industry must navigate these complexities to maintain its competitive edge. The ongoing technological competition will be pivotal in determining the future dynamics between these two industrial powerhouses.
